As an avid gamer who has been sucked into one too many shady crypto schemes, I‘ve learned the hard way just how rampant manipulation is in this industry. The recent allegations against finance influencer "19Keys" in a YouTube expose reminded me so much of the grifts I‘ve fallen for before – lofty promises backed by little substance, grandiose claims without accountability.
The crypto and gaming spaces have a lot in common: both are new digital frontiers moving at breakneck speed. This creates ample opportunities for ordinary folks to build wealth…but also allows slick scammers to pull the virtual wool over our eyes.
Believe me, I get the temptation here. Who wouldn‘t want to level up from casual gamer to wealthy entrepreneur with hot stock tips, insider secrets or a flashy course? But more often than not, those "easy wins" go bust or drain your coins faster than an epic loot box spree.
As a crypto gamer who has taken their share of brutal hits to my portfolio health bar, I‘ve compiled this beginner‘s guide so you can dodge deception and invest smarter. Here are my hard-won lessons for spotting and avoiding crypto scams:
Warning Signs a Crypto Offer is a Scam
Keep an eye out for these common red flags:
Too Good to Be True Returns
Get rich quick schemes promising ridiculous returns (100x in weeks!) are almost always scams. Sustainable crypto gains take time and discipline. Always ask – what‘s the catch here?
Shady "Expert"
Check credentials and community reviews thoroughly before following any self-proclaimed guru. Scammers use fancy jargon and titles to appear credible but lack substance.
High Pressure Tactics
Beware influencers pushing you to invest "NOW before you miss out!". This manufactured FOMO benefits them, not you.
No Clear Roadmap
If a crypto course/program makes big claims without explaining step-by-step how they‘ll deliver, proceed with caution. The devil is in those murky details.
Crypto Scam Data:
- $7.7+ billion lost to crypto scams globally in 2021 (Chainalysis)
- Up 81% from 2020, making crypto the #1 scam payment method
- 74% of crypto scam revenue came from rug pulls and investment fraudsAs these stats show, sham crypto schemes are on the rise and getting cleverer. We need to get savvier to stop falling for the same old tricks.
Do Your Due Diligence – Ask These Key Questions
Con artists thrive when we make rushed, emotional decisions instead of questioning properly. Train yourself to ask smarter questions:
What Are This Person‘s Credentials & Experience?
Don‘t just take someone‘s word that they are a crypto expert or trading whiz. Do background research to verify qualifications, credentials and proven track record. Beware of vague, uncheckable claims.
How Are They Making Money from Me?
Understand exactly how this person/program profits from your participation, whether it be a course fee, subscription, sponsorship etc. Know how aligned their incentives are with yours.
Who Has Succeeded With Their Method? Can I Reach Them?
Ask for contact info of real people who have recently profited from this advisor‘s crypto program. If denied, it‘s a red flag. Be wary of fake reviews and testimonials.
Is There a Clear Roadmap I Can Evaluate?
Whether for a crypto trading program, ICO investment or NFT collection, you should understand exactly what your money will achieve. If the roadmap is vague or keeps changing, proceed with extreme caution.
Are There Accountability Mechanisms in Place?
Legit crypto projects build in transparency, accountability checks and ways to course-correct when milestones aren‘t met or promises not delivered. Regular audits, community oversight and updating processes help. Lack of governance is a huge red flag.
Typical Scam Artist Tactics To Watch For:
- Appeal to greed/fear
- Fake endorsements
- Miracle solutions
- Refuse to provide detailed info
- Victim blaming
- Censor criticismThese are common tricks nearly every crypto fraudster deploys. Once aware of them, they‘re easier to spot and sidestep.
Telltale Signs You‘ve Been Scammed
Sometimes despite our best efforts, these sly devils still manage to pull one over on us. Here are clear signals a scheme you‘ve invested in is likely bogus:
5 Signs You‘ve Been Scammed:
- Leader goes AWOL suddenly
- Stalls/excuses why payout is late
- Deletes questions/criticism
- Community gets restricted
- Program rules keep changing Disreputable actors will tap dance around accountability until finally ghosting angry members. You may beat yourself up at first, but remember scammers are experts at social manipulation. The shame lies fully with them.
My #1 Crypto Scam Prevention Tactic
Above all, let logic override FOMO and guard against emotional decisions. Whenever you feel that panicked urge to buy/sign up right now before missing this chance of a lifetime, stop everything and force yourself through the due diligence questions first.
9/10 times just pausing to evaluate claims rationally will reveal shady inconsistencies that were hiding in plain sight. I cannot stress this enough – the absolute best scam protection is giving yourself time and space to assess opportunities logically before pulling the trigger.
Ask These Questions When Unsure:
- If this was too good to be true, what am I missing?
- Where are the holes in their claims and roadmap?
- How specifically will they deliver on promises?
- Who has verifiably benefitted from this so far?Train yourself to default to skepticism until full evidence proves otherwise. The crypto learning curve is steep – don‘t beat yourself for being duped. But we can commit to asking smarter questions moving forward.
Bottom Line
With con artists around every virtual corner, the crypto gaming arena demands our smarts just as much as our specs or rigs. But with scam prevention habits in place, we can relish both the profits and gameplay. Stay two steps ahead, friends! Now headshot that FOMO dead and let your logic level up.
Author Bio:
Tae Kim is a passionate crypto gamer who specializes in spotting and avoiding online investment scams after losing over 200 ETH in questionable schemes. He now runs "The Crypto BS Detector" blog helping fellow gamers make smarter decisions and steer clear of manipulation in this dynamic new space.